The budget provided for increased personal income taxes on those with an annual income of more than Rs 2 crore. The government is planning to exempt FPIs from the tax.

HIGHLIGHTS

Govt is planning to exempt foreign portfolio investors from an increase in taxes proposed in budget

Budget provided for additional surcharge on super rich taxpayers

Sources say government will either issue a notification or an executive order to the effect

Modi government is likely to exempt foreign portfolio investors from an increase in taxes that was part of the budget approved by Parliament, a government official said on Thursday.

The budget provided for increased personal income taxes on those with an annual income of more than Rs 2 crore.

The official, who declined to be named, said the government will either issue a notification or an executive order, which could be later submitted to Parliament for approval, to exempt the foreign portfolio investors, mainly registered as trusts, from the increase in surcharge on super-rich taxpayers.